Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineBig transactions at Pets at Home following first half results
Pets at Home (PETS) 415p
Gain to date: 79.6%
Original entry point: Buy at 231p, 5 September 2019
Despite a mini wobble around the company’s first half results (24 Nov), our positive call on specialist retailer Pets at Home (PETS) continues to bear fruit.
The company has subsequently announced the £15 million acquisition of animal health telephone service The Vet Connection (30 Nov) and the £100 million disposal of its Specialist referral hospitals to veterinary group Linnaeus (1 Dec).
This latest deal suggests the company is narrowing its focus to the online and retail stores and so-called ‘first opinion’ vet practices.
Following the transactions Shore Capital analyst Greg Lawless commented that there were ‘lots of moving parts to model’ but added: ‘We like the Pets strategy which mixes the products and services and the self-help levers available to the company, through increased personalisation from data from the VIP loyalty club.’
Alongside numbers covering the six-month period to 8 October, Pets said a stronger second quarter performance had continued into the third quarter but also cautioned on Covid-19 risks.
Pre-tax profit increased to £38.9 million, up from £34 million year-on-year, as revenue grew 5.1% to £574.4 million.
SHARES SAYS: We still back the strategy. Keep buying.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Editor's View
First-time Investor
Great Ideas
- 122% in four months: This stunning run for The Panoply should continue
- Primark owner Associated British Foods is well placed for a recovery
- Aviva chief delivers on promise to add shareholder value
- Big transactions at Pets at Home following first half results
- Cheap access to a hot style with a 4.9% yield
Money Matters
News
- Investors warned of tracker flip risk ahead of Tesla’s S&P 500 entry
- Here’s why gold has sold off, copper has rallied and oil remains volatile
- Hipgnosis benefits from change in valuation method
- The companies eyeing Arcadia assets after collapse
- Kingspan ESG credentials clouded by Grenfell inquiry
- Life sciences industry veteran David Evans launches new investment company
- Consequences of the pound rally on certain UK stocks
- Fabric coating Covid killer HeiQ to join UK stock market
